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American Water (AWK) to Report Q1 Earnings: What to Expect
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American Water Works Company (AWK - Free Report) is set to release first-quarter 2020 results on May 6, after market close. In the last reported quarter, the company delivered break-even earnings.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Note
American Water has been enjoying the benefits of both organic and inorganic initiatives. During the first quarter, the company invested in capital projects and ensured that work does not get disrupted. Stay-at-home orders to prevent the virus spread definitely increased residential demand for water and are likely to have had a positive impact on first-quarter earnings.
During the first quarter, American Water — through its subsidiaries — ensured no disconnection of utility services due to nonpayment of dues. This might have affected its bottom line to some extent.
Q1 Expectation
The Zacks Consensus Estimate for first-quarter earnings is pegged at 65 cents per share, which indicates year-over-year growth of 6.6%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for American Water this time around. The combination of a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
American Water Works Company, Inc. Price and EPS Surprise
Earnings ESP: The company’s Earnings ESP is -0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Water currently has a Zacks Rank #2.
Stocks to Consider
Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
New Jersey Resources (NJR - Free Report) is scheduled to release second-quarter fiscal 2020 results on May 8. It has an Earnings ESP of +3.86% and a Zacks Rank #3.
Spire Inc. (SR - Free Report) is scheduled to release second-quarter fiscal 2020 results on May 8. It has an Earnings ESP of +0.17% and a Zacks Rank #3.
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American Water (AWK) to Report Q1 Earnings: What to Expect
American Water Works Company (AWK - Free Report) is set to release first-quarter 2020 results on May 6, after market close. In the last reported quarter, the company delivered break-even earnings.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Note
American Water has been enjoying the benefits of both organic and inorganic initiatives. During the first quarter, the company invested in capital projects and ensured that work does not get disrupted. Stay-at-home orders to prevent the virus spread definitely increased residential demand for water and are likely to have had a positive impact on first-quarter earnings.
During the first quarter, American Water — through its subsidiaries — ensured no disconnection of utility services due to nonpayment of dues. This might have affected its bottom line to some extent.
Q1 Expectation
The Zacks Consensus Estimate for first-quarter earnings is pegged at 65 cents per share, which indicates year-over-year growth of 6.6%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for American Water this time around. The combination of a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
American Water Works Company, Inc. Price and EPS Surprise
American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote
Earnings ESP: The company’s Earnings ESP is -0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Water currently has a Zacks Rank #2.
Stocks to Consider
Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
Consolidated Edison, Inc. (ED - Free Report) is set to release first-quarter 2020 numbers on May 7. It has an Earnings ESP of +0.52% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
New Jersey Resources (NJR - Free Report) is scheduled to release second-quarter fiscal 2020 results on May 8. It has an Earnings ESP of +3.86% and a Zacks Rank #3.
Spire Inc. (SR - Free Report) is scheduled to release second-quarter fiscal 2020 results on May 8. It has an Earnings ESP of +0.17% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>